Registration number:
Devon Contractors Limited
for the Year Ended 31 May 2023
Devon Contractors Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Devon Contractors Limited
Company Information
Directors |
Mr N England Mr S Bennington Mr D Hunt Mr P Alderson |
Company secretary |
Mr S Bennington |
Registered office |
|
Auditors |
|
Devon Contractors Limited
Strategic Report for the Year Ended 31 May 2023
The directors present their strategic report for the year ended 31 May 2023.
Principal activity
The principal activity of the company is building contracting and civil engineering contracting.
Fair review of the business
The year ended May 2023 saw market share reduce. This is due to the backdrop and implications of Covid 19 coupled with the volatility of inflation on commodity prices has impacted the already challenging trading conditions and lead to ongoing fixed price contracts having profits squeezed. Looking forward with the outlook for inflation falling and fixed price contracts completing the company remains positive for a successful year ahead.
The directors consider that the company performed in line with expectations.
We continue to invest significantly in the development of our people and the evolution of our employer brand. It is our firm belief that our staff are the overarching differentiator in the service that we provide and the primary driver for our continued success.
The directors do not recommend payment of a final dividend.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2023 |
2022 |
|
Turnover |
£ |
22,615,761 |
26,998,990 |
Operating profit |
£ |
32,349 |
28,924 |
Profit after tax |
£ |
36,671 |
17,588 |
Shareholders funds |
£ |
1,046,021 |
1,044,544 |
Current assets as a % of current liabilities |
% |
118 |
111 |
Devon Contractors Limited
Strategic Report for the Year Ended 31 May 2023
Principal risks and uncertainties
The directors have reviewed the industry in which the company operates and they consider there are no significant risks and uncertainties that need disclosing within this report, other than the below.
Following the outbreak of COVID-19 and the increasing economic impact of this worldwide pandemic, the directors have reviewed budgets to assist with the effect on the company. Due to the nature of the business, there has been an impact on its ability to trade with customers. However, this is not believed to significantly impact going concern. The company will continue to pro-actively manage the effects of the pandemic.
We have considered the potential impact of Brexit on the business and whilst there is uncertainty around the possible wider economic impact, the company has significant number of tenders and future secured workload.
Price risk - The company is exposed to price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposures to equity securities price risk as it holds no listed or other equity investments.
Credit risk - The company has implemented policies that require appropriate credit checks on potential customers before contracts are entered. The credit given to customers is subject to limits which are determined and reassessed by the directors.
Liquidity risk - The company actively maintains a mixture of finance, designed to ensure the company has sufficient available funds for operations.
Interest rate flow risk - The company is not exposed to interest bearing liabilities.
Environmental and Social Matters
Information about environmental matters, the company's employees, social community and human rights issues have not been provided as the directors do not believe that this is fundamental to gain an understanding of the business.
Approved and authorised by the
......................................... |
Devon Contractors Limited
Directors' Report for the Year Ended 31 May 2023
The directors present their report and the financial statements for the year ended 31 May 2023.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
The company has procedures to identify risk and manage risks that may hinder its financial performance objectives. The objective is to limit counterparty exposure, ensure sufficient weekly capital and to mitigate the risk identified. The company does not consider it necessary to employ derivatives to manage risk based on the current activities of the company.
Objectives and policies
The company's operations expose it to a variety of financial risks that include the effects of changes in market prices, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company.
Future developments
The directors aim to maintain the management policies going forward. They consider that the next period profitability will be marginally increased with maintenance of market share against a backdrop of economic uncertainty.
Research and development
There has been no research and development for the company in the year ended 31 May 2023 or 31 May 2022.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
|
Devon Contractors Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Devon Contractors Limited
Independent Auditor's Report to the Members of Devon Contractors Limited
Opinion
We have audited the financial statements of Devon Contractors Limited (the 'company') for the year ended 31 May 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 May 2023 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Devon Contractors Limited
Independent Auditor's Report to the Members of Devon Contractors Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Devon Contractors Limited
Independent Auditor's Report to the Members of Devon Contractors Limited
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
• |
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
• |
inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; |
• |
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Winchester House
Deane Gate Avenue
Somerset
TA1 2UH
Devon Contractors Limited
Profit and Loss Account for the Year Ended 31 May 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
32,349 |
28,924 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
12,867 |
(3,730) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above and therefore a separate statement of other comprehensive income has not been presented.
Devon Contractors Limited
(Registration number: 00533232)
Balance Sheet as at 31 May 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
|
Devon Contractors Limited
Statement of Changes in Equity for the Year Ended 31 May 2023
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 June 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 May 2023 |
|
|
|
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 June 2021 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 May 2022 |
|
|
|
|
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Summary of disclosure exemptions
The company is a member of a group where the parent of that group prepares publicly available consolidated financial statements which are intended to give a true and fair view and that member is included in the consolidation. Therefore, the company has adopted the exemption from requirement to present a statement of cash flows and related notes.
Furthermore, in line with FRS102.33.1A, the company has adopted the exemption from disclosing transactions with members of the the above referenced group.
Name of parent of group
These financial statements are consolidated in the financial statements of Devon Contractors (Holdings) Limited.
The financial statements of Devon Contractors (Holdings) Limited may be obtained from .
Going concern
The directors have reviewed projections and forecasts for the next twelve months, given the level of cash held by the company, levels of reserves, lack of external financing and support of the shareholders, the directors consider the company to be a going concern and able to continue trading for the foreseeable future and will be able to meet its financial obligations as they become due.
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods
The estimates and assumptions which are considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Contract valuation
The directors review the valuation of long term contracts on a regular basis. When the outcome of a construction contract can be estimated reliably, revenue and costs associated with the contract are recognised by reference to the stage of completion and any expected losses are recognised immediately. The carrying amount is £2,343,992 (2022 - £2,707,778).
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and value added tax.
When the outcome of a construction contract can be estimated reliably, the company recognises contract revenue and contract costs associated with the construction contract as revenue and expenses respectively by reference to the stage of completion of the contract activity at the end of the reporting period.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
Straight line basis over 2 to 5 years or 40%/50% first year and straight line for the next 3 years |
Fixtures, fittings and equipment |
Straight line basis up to 5 years |
Motor vehicles |
Straight line basis over 5 years |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Long term contracts
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.
Debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions for loss making contracts are recognised immediately in full in the profit and loss statement. Any anticipated losses in respect of onerous contracts are expensed in the accounting period in which such losses become probable.
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
2023 |
2022 |
|
Construction contracts |
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
Operating profit |
Arrived at after charging/(crediting):
2023 |
2022 |
|
Depreciation expense |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
|
|
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
|
- |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:
2023 |
2022 |
|
Directors |
|
|
Administration |
|
|
Construction workers |
|
|
|
|
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
420,413 |
448,529 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
Taxation compliance services |
|
|
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Taxation |
Tax charged/(credited) in the income statement:
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
- |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of revenues exempt from taxation |
( |
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
UK deferred tax expense relating to changes in tax rates or laws |
|
|
Total tax charge |
|
|
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Deferred tax
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Deferred tax |
- |
|
- |
|
2022 |
Asset |
Liability |
Deferred tax |
- |
|
- |
|
Tangible assets |
Furniture, fittings and equipment |
Plant and machinery |
Motor vehicles |
Total |
|
Cost |
||||
At 1 June 2022 |
|
|
|
|
Additions |
|
|
- |
|
Disposals |
- |
- |
( |
( |
At 31 May 2023 |
|
|
|
|
Depreciation |
||||
At 1 June 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
At 31 May 2023 |
|
|
|
|
Carrying amount |
||||
At 31 May 2023 |
|
|
|
|
At 31 May 2022 |
|
- |
|
|
Restriction on title and pledged as security
Amounts included in tangible assets are secured by a debenture incorporating a fixed and floating charge.
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Debtors |
Current |
Note |
2023 |
2022 |
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Income tax asset |
|
- |
|
|
|
The carrying amount of debtors pledged as security for liabilities amounted to £2,908,761 (2022 - £4,336,335).
Amounts included in debtors are secured by a debenture incorporating a floating charge.
Cash and cash equivalents |
2023 |
2022 |
|
Cash at bank |
|
|
Amounts included in cash and cash equivalents of £3,132,500 (2022 - £5,154,860) have been secured by way of a debenture incorporating a floating charge.
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to related parties |
|
- |
|
Social security and other taxes |
|
|
|
Accruals |
|
|
|
Corporation tax liability |
- |
8,280 |
|
|
|
There is an unlimited debenture dated 11 July 2013 incorporating a fixed and floating charge over all of the company's assets and a first legal charge over cash dated 6 March 2017.
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 June 2022 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 May 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £6,644 (2022 - £6,781) were payable to the scheme at the end of the year and are included in creditors.
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
15,000 |
|
15,000 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Reserves |
Capital redemption reserve
Arising on the buyback of shares, this reserve represents a non-distributable balance arising from share capital purchased from the shareholders. This therefore ensures the maintenance of the capital base of the company.
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
- |
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
Interim dividends paid
2023 |
2022 |
|||
Interim dividend of £ |
|
|
||
Commitments |
Capital commitments
The total amount contracted for but not provided in the financial statements was £
Contingent liabilities |
At the year end the company's underwriters have given bonds to certain customers of the company to guarantee completion of the projects undertaken. The amount of these bonds varied throughout the year and as at the year end there are £379,433 outstanding (2022 - £401,259). This facility is held in the sole name of Devon Contractors Limited.
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Related party transactions |
Transactions with directors |
2023 |
At 1 June 2022 |
Advances to director |
Repayments by director |
At 31 May 2023 |
Mr S Bennington |
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|
- |
|
( |
|
Mr P Alderson |
||||
|
|
- |
- |
|
2022 |
At 1 June 2021 |
Advances to director |
Repayments by director |
At 31 May 2022 |
Mr N England |
||||
|
|
|
( |
- |
Mr S Bennington |
||||
|
|
|
( |
- |
Mr D Hunt |
||||
|
|
|
( |
- |
Mr P Alderson |
||||
|
|
|
( |
|
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Income and receivables from related parties
2023 |
Other related parties |
Sale of goods |
|
|
2022 |
Other related parties |
Sale of goods |
|
|
Expenditure with and payables to related parties
2022 |
Other related parties |
Purchase of goods |
|
Rendering of services |
|
|
|
|
There has been no expenditure with or payables to other related parties in the year ended 31 May 2023.
Loans to related parties
2023 |
Key management |
Total |
At start of period |
|
|
At end of period |
|
|
|
2022 |
Key management |
Total |
At start of period |
|
|
Advanced |
|
|
Repaid |
( |
( |
At end of period |
|
|
|
Terms of loans to related parties
Devon Contractors Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Loans from related parties
2023 |
Other related parties |
Total |
Advanced |
|
|
At end of period |
|
|
|
Terms of loans from related parties
Parent and ultimate parent undertaking |
There is no ultimate controlling party of Devon Contractors Limited.
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is